Date: 09/08/2000 4:02 PM
Subject: File No. S7-13-00
Dear SEC Chariman Arthur Levitt
I wish to comment on the upcoming public hearing regarding the proposed
"Auditor Independence" rules.
I am, like many others are, an individual investor. I utilize the
financial statements submitted to the SEC by companies of interest to
determine their worthiness of my hard earned dollars. I pay limited
attention to financial press-releases and conecentrate on the SEC
docuements for the main reason that they have been approved/reviewed by an
independent auditor. This brings comfort to me when I read those SEC
documents - they represent a level of trust and competence that I assume is
present in the numbers.
If, even for a moment, I am unsure of the validity and truthfullness of
those numbers I stop and move on to another company. I have no need for
marketing and hype when I'm looking for metrics and honest facts.
I support your endeavor of decoupling the Auditing services from the
Consulting Services of various companies. The inherent conflict of interest
present in such a business is plain to see - similar in nature to the
Selective Disclosure issue debated earlier this summer. I cannot and will
not invest in any company whose Auditors have such buisness arrangements,
yet I am powerless to stop such a practice. You, Mr. Levitt, are in a
position to stop such a practice. I, along with the millions of other
individual investors, support you.
--J. Frechette